Kathmandu. The devastation that took place during the Tanneri Generation (Gen G) agitation against corruption and anarchy in August has increased the pressure on non-life insurance companies.
According to the data published by the Nepal Insurance Authority, the amount of claims due to non-life insurers has increased by 59.11 percent. A total of Rs 52.20 billion is yet to be paid by the non-life insurer till mid-October 2018. In the first quarter of the last FY, the outstanding claim payment amount stood at Rs 32.81 billion.
The vandalism, arson, theft and looting during the Gen G movement have created huge financial pressure for non-life insurance companies that have been saving on insurance premiums from vandalism and mob insurance over the past few years.
According to NEA, the claim amount of non-life insurer has increased by 31.85 percent in the current fiscal year 2082/83 compared to the first quarter of the last fiscal year 2081/82. The non-life insurer has paid a total of Rs 5.64 billion in the first three months of the current fiscal year.
The non-life insurance company has settled a total of 32,615 claims till mid-October of the current fiscal year 2082/83. The number of claim payments has increased by 5.39 percent compared to mid-October of the last fiscal year. Most of these are small sum insured claims related to motor insurance, health insurance and travel insurance.
In the current fiscal year, due to the loss caused by natural disasters and political movements, both the number of claims and the amount will increase, which will further increase the pressure on the balance sheet of the non-life insurer.
